Most companies still do not have Croatian natural disaster insurance

20 January 2022 – Most businesses and individuals still have no Croatian natural disaster insurance despite the devastating events of 2020 which saw the capital and county of Sisak-Moslavina in central Croatia rocked by violent earthquake.

Like Poslovniy Dnevnik/Tomislav Pili writing, despite record amounts of premiums written last year, the Croatian insurance industry has warned that a large number of residents, businesses and the economy are still exposed to uninsured risks, especially those posed by natural disasters. As the Croatian Insurance Office (HUO) recently announced, the gross written premium of Croatian insurers last year reached 11.7 billion kuna, which is a significant increase of 11.86% compared to the previous year. ‘last year.

In the non-life insurance segment, total premiums increased by 672 million kuna or 9.15% compared to the previous year, while in the life insurance segment, gross written premiums increased by 8.24% per year, reaching 2.9 billion kuna.

“So with the great resilience that insurance companies have shown in these extremely volatile times over the past two years, their stable and secure operations have continued and they have continued to offer strong support to people through a prompt two-way communication and payment of damages without delay, even under extraordinary conditions,” they said from HUO.

However, the stable contribution of insurers would be even greater if more people had taken out some form of adequate insurance cover, including Croatian natural disaster insurance like that issued for earthquakes, according to the umbrella organization of insurers. Despite the fact that the insurance market in the country continues to develop, ranking third in the Croatian financial market, behind banks and mandatory pension funds, and although a slight growth has been achieved, the Croatia still lags significantly behind more developed countries.

“Last year, the average insurance premium per capita in Croatia was 399 euros, while the average at EU level was 2,085 euros. For example, the average insurance premium in the life insurance segment in the EU is 1,163 euros, and in Croatia it is 99 euros, in the health insurance segment in the EU it reaches 248 euros, in Croatia it is only 24 euros, while in the asset protection segment in the EU it is 178 euros, and in Croatia it is 59 euros, which is a consequence of a lower standard of living, but also lower financial literacy people,” they told HUO.

Citizen awareness

The devastating earthquakes of 2020 raised awareness and 2021 saw an increase in the number of people taking out earthquake insurance, an increase of 43.4% compared to 2020.

“Over the past two years, insurers have paid out 541 million kuna in damages, less than half a percent of the total damage caused by the earthquakes of 2020, which clearly indicates that the penetration of this type insurance is still very low. The Croatian Insurance Office (HUO) would like to warn the public that despite the two-year increase, the number of insurance policies against earthquakes, in particular the insurance of residential buildings, is still relatively low across Croatia, which is particularly important in light of the fact that Croatia, together with Greece, Turkey, Macedonia and Italy, is in the riskiest area of ​​Europe tectonically,” the statement said.

To find out more, see our section dedicated to businesses.